Evolution’s NGR up 14.7% in Q3 despite strike action

Neha Soni October 28, 2024

SiGMA news

B2B solution provider for casino operators Evolution has reported an increase in net gaming revenue (NGR) for the third quarter of 2024. The gaming company noted an increase of 14.7 percent to €519.4 million in net revenue for the quarter.

Of this, €446.9 million came from its live casino segment, which grew 15.8 percent year-on-year. Growth was also seen in the company’s RNG segment, generating €72.5 million, up 8.5 percent from the same period last year.

The profit figure rose to €328.6 million from the last year’s €272.8 million. Earnings per share has also risen to €1.57 from €1.28. The company registered €579 million in total operating revenue, up 27.9 percent year-on-year. The operating revenue is inclusive of a one-time contribution of €59.7 million due to reduced earn-out liabilities. Evolution’s adjusted earnings before interest, taxes, depreciation and amortisation, excluding one-time revenues, grew by a slower 11.6 percent to €355.6 million. The figure has lowered the margin to 68.5 percent, down from 70.4 percent in Q3 2023, marking a decline of 2.7 percent.

CEO on strike and cyberattacks

CEO Martin Carlesund discussed the two “negative impact” factors that have influenced the results of the gaming company, including a labour strike in Georgia and increased cyberattacks in Asia. The strike began in mid-July after trade union negotiations failed to reach an agreement and has since reached a stalemate.

As per the CEO, the company supports the rights of its employees to participate in unions, he said the violent actions of the union disrupted Evolutions’ operations, forcing them to “down-size capacity in Georgia.” “We expect margins to remain around the same level for the final quarter of the year and therefore we expect to complete the year slightly below our expectation from the beginning of 2024, of full year EBITDA margin in the 69-71 percent range,” he added. “The union affiliated activists have also actively spread lies and disinformation about Evolution. We are taking all legal actions available against this defamation,” he added. “Currently, the situation in Georgia is stable and we will continue to rebuild and increase capacity in other locations in the network over the coming quarters to be able to support future growth,” he said. Evolution saw increased advance cyberattacks targeting its video distribution, which has negatively impacted revenue from the region. Carlesund said, “Evolution has successfully deployed measures to counteract these intrusions, but it has negatively impacted the third quarter. We continue to see attacks and we will continue to aggressively scale up counter measures.”